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US surprised about Cop troika 'vision' on finance, NDCs

  • Spanish Market: Emissions
  • 21/03/24

The US said today that some of the wording in the "vision" set out by the Cop presidencies Troika — comprising the UN Cop 28, 29 and 30 climate summit hosts the UAE, Azerbaijan and Brazil — could be "highly prejudicial" to ongoing negotiations on a new global finance goal for developing countries.

US deputy special envoy for climate Sue Biniaz, taking part in the Copenhagen Climate Ministerial today, said she was "quite surprised" with some aspects of the letter, setting out the "vision", sent by the group of three presidencies to all parties to the UN Framework Convention on Climate Change (UNFCCC).

The troika was created earlier this year and has been welcomed by countries in the Cop process to push forward crucial issues such as setting more ambitious Nationally Determined Contributions (NDCs) — climate goals — for 2025 and climate financing.

"We don't agree with what the letter calls the 'reframing of ambition', and we don't think it's true to the Paris Agreement or to the UAE Consensus [the outcome of Cop 28]," the US delegate said today. She added that the letter suggests that this year's "focus on NDCs should be all about support, and maybe even that support is a pre-condition to NDCs" and "defines 'high ambition NDC' for developed countries as one that includes finance for developing countries". She said that this was "inconsistent with the Paris agreement".

The vision published today is centered on an "aim to raise and reframe ambition for the development process of the next round of NDCs", focusing on supporting parties, mobilising technical and financial resources to "stimulate ambitions" and "utilising existing mechanisms, processes and stakeholders, within and outside the UN system, to channel... finance".

The letter also said that "high ambition NDCs should include ambition in finance, technology and capacity-building resources to developing countries, in the case of NDCs from developed country-parties". Finance, technology and capacity-building are often referred to as 'means of implementation' in the UNFCCC process.

Belgium's climate minister Zakia Khattabi, representing the EU at the opening of the ministerial, expressed similar concerns, saying that the bloc does not support "reframing NDCs as vehicles for the provision of means of implementation".

This comes as a new climate finance goal — the NCQG — following on from the $100bn/yr goal by 2025 must be decided at Cop 29 in November.

"We appreciate the efforts of the Troika and encourage you to focus on delivering the UAE consensus. We strongly believe that it must be delivered, not reinterpreted, fulfilled, not renegotiated," UK energy security and net zero minister Graham Stuart said.

Cop 28 president Sultan al-Jaber told delegates at the ministerial that the letter advocates "strongly for early submission of high ambition NDCs" and that the UAE, Azerbaijan and Brazil committed to submit NDCs aligned with the 1.5°C temperature goal of the Paris agreement by 2025.

The US delegate also pointed out that the letter "omits the key paragraph of the UAE consensus" on economy-wide NDCs including all greenhouse gases (GHG). But al-Jaber reiterated today that NDCs should include these elements, adding that countries should put policies in place to deliver emission reductions of 60pc compared with 2019 levels, before 2035.

It has a commitment from troika countries to submit their own 1.5°C-aligned NDCs by early 2025. The three Cop hosts said they will convene high-level meetings focusing "on the quantity and quality of support needed by parties to ensure NDCs can deliver 1.5°C-aligned just climate transitions."

Developing countries have long called for meaningful climate finance to allow them to implement their emissions reduction plans, but disagreement over funding sources could continue to hinder negotiations going into Cop 29.


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19/06/25

BMWE legt RED III Entwurf vor

BMWE legt RED III Entwurf vor

Hamburg, 19 June (Argus) — Das BMWE hat Verbänden am 19. Juni einen ersten Referentenentwurf zur Umsetzung der RED III vorgelegt. Diese sieht grundlegende Veränderungen zur Erfüllung der THG-Quote vor. Erste Preisindikationen steigen schlagartig. Um die auf EU-Ebene gültige dritte Fassung der Erneuerbare-Energien-Direktive (RED III) in deutsches Recht umzusetzen, hat das Bundesministerium für Wirtschaft und Energie (BMWE) einen Entwurf zur Anpassung des Bundes-Immissionsschutzgesetzes (BImSchG) vorgelegt. Unter anderem sieht der Entwurf vor, die Treibhausgasminderungsquote (THG-Quote) bis 2040 schrittweise auf 53 % zu erhöhen (siehe Grafik). Das bisherige Ziel war eine Quotenhöhe von 25,1 % im Jahr 2030. Auch der Pfad bis 2030 wurde leicht angepasst. Damit käme das Gesetz, wenn es in dieser Form umgesetzt wird, einer vielgeäußerten Forderung der Biokraftstoffindustrie nach, die sich für eine stärkere Quotenerhöhung eingesetzt hat. Infolgedessen melden erste Marktteilnehmer Angebote für Andere Zertifikate für das Verpflichtungsjahr 2026 in Höhe von 175 €/tCO2e. Für dieselben Zertifikate für 2025 werden 125 €/tCO2e geboten. Zusätzlich enthält der Entwurf einen Mechanismus, der im Falle einer Übererfüllung die Höhe der Quote im übernächsten Jahr erhöht. Ausschlaggebend ist dafür, ob die gesamte Quotenerfüllung in einem Jahr bereits ausreichen würde, um die Quotenhöhe des Übernächsten Jahres zu erfüllen. Darüber hinaus sieht der Entwurf vor, die Option zur zweifachen Anrechnung von als fortschrittlich geltenden Biokraftstoffen abzuschaffen und die Mindestquote zu erhöhen. Diese steigt dann bis 2030 auf 3 %. Zuvor lag das Ziel bei 2,6 %. Viele Marktteilnehmer haben gemutmaßt, dass die Doppelanrechnungsoption entfallen würde, um die benötigte Menge an Erfüllungsoptionen zu erhöhen. Auch welche Kraftstoffe zur Erfüllung der Quote genutzt werden können wird angepasst: So können keine Kraftstoffe auf Soja- oder Palmölbasis zur Erfüllung genutzt werden. Letzteres schließt auch Kraftstoffe aus Nebenprodukten der Palmölproduktion, allen voran Palmölmühlenabwasser (POME) ein. Dieses wurde in der Vergangenheit insbesondere genutzt, um die fortschrittliche Unterquote zu erfüllen, da es dank einer Sonderklausel trotz seiner Einstufung als fortschrittlich nur einfach zur Erfüllung der THG-Quote angerechnet werden konnte. Diese Regelung würde direkt ab Inkrafttreten der Gesetzesänderung wirksam werden. Die Anrechnungsgrenzen für futtermittel- und abfallbasierte Kraftstoffe werden ebenfalls angepasst: Während das Limit für futtermittelbasierte Produkte bis 2030 von 4,4 % der in Verkehr gebrachten Energiemenge auf 3 % reduziert wird, steigt das Limit für abfallbasierte Produkte wie Altspeiseöl (UCO) bis 2039 von 1,9 % auf 2,8 %. Zusätzlich wird eine Mindestquote für erneuerbare Kraftstoffe nicht-biogenen Urpsrungs (RFNBO) eingeführt. 2026 beträgt der energetische Mindestanteil 0,1 % und soll bis 2040 auf 12 % steigen. Zu den RFNBOs gehören unter anderem synthetische Kraftstoffe wie eFuels (PtL, Power-to-Liquid) und Grüner Wasserstoff. Der Entwurf erweitert den Geltungsbereich der THG-Quote außerdem auf den Luftverkehr. Bisher galt hier eine gesonderte Quote für erneuerbare Kraftstoffe. Darüber hinaus unterliegt nun auch der Seeverkehr der THG-Quote. In der Seefahrt genutzte Kraftstoffe, die im Straßenverkehr anrechenbar wären, können hierbei jedoch nicht für die Erfüllung genutzt werden. Damit soll vermieden werden, dass Unternehmen die Erfüllung ihrer Verpflichtung komplett vom Straßenverkehr auf die Seefahrt umwälzen. Der Entwurf sieht außerdem vor, dass erneuerbare Kraftstoffe nur noch angerechnet werden können, wenn Vor-Ort-Kontrollen der Produktionsstätten durch staatliche Kontrolleure ermöglicht werden. Dies soll das Betrugspotenzial bei der Anrechnung von Biokraftstoffen mindern. Der Entwurf liegt nun den Branchenverbänden vor. Ein Mitglied des Umweltausschusses erklärte am 4. Juni im Rahmen einer Podiumsdiskussion, dass der Entwurf nach Anpassung an eventuelle Verbandsvorschläge im Oktober dem Parlament zur Debatte vorgelegt werden soll und idealerweise zum 1. Januar 2026 in Kraft treten soll. Der Referentenentwurf sieht vor, dass die Änderungen an der THG-Quote mit Beginn des neuen Verpflichtungsjahres in Kraft treten. Dies soll Marktverwerfungen verhindern, für den Fall, dass die Gesetzesänderung innerhalb eines Verpflichtungsjahres in Kraft treten sollte. Von Svea Winter & Max Steinhau Entwicklung der THG-Quote bis 2040 Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2025. Argus Media group . Alle Rechte vorbehalten.

Australia’s carbon credit supply remains strong in May


19/06/25
19/06/25

Australia’s carbon credit supply remains strong in May

Sydney, 19 June (Argus) — Australian Carbon Credit Unit (ACCU) supply remained strong in May, bringing total issuances over January-May 2025 closer to the combined volume in the first half of 2024, according to data published on 19 June. A total of 2.11mn ACCUs were issued in May, up from 1.99mn in April , register data released by the Clean Energy Regulator (CER) show. This takes total supply over January-May 2025 to 7.15mn, close to the 7.66mn issued in the first six months of 2024. The regulator did not publish monthly data before 2025. Vegetation methods, mainly from human-induced regeneration (HIR) and avoided deforestation (AD) projects, accounted for 1.32mn ACCUs in May, or nearly 63pc of the total. This was up from just 29pc in April, but below shares of around 82-90pc in February and March. Waste methods, mostly from landfill gas projects, made up 670,596 units, or approximately 32pc of the total. Savana burning, agriculture and energy efficiency methods accounted for the remaining issuances in May ( see chart ). The high number of issuances in April was because of a "backlog of crediting applications for waste methods" , which was expected to clear in the second quarter, the CER said last week. A total of 3.04mn ACCUs were issued in the first quarter, and 5mn applications were "on hand" as of 31 March 2025, the regulator said. The CER maintained its supply forecast of 19mn-24mn for 2025. Bioenergy company LMS Energy remained the largest recipient of new ACCUs in May at 329,879 units, followed by environmental market investor GreenCollar's subsidiary Terra Carbon at 315,420 units and waste management firm Veolia at 154,015 units. ACCU spot prices have been stable in June but continued to rise slowly on the month. The Argus ACCU generic no avoided deforestation (No AD) spot price assessments averaged A$35.65/t CO2 equivalent ($23.20/t CO2e) so far in June, up from A$35.35/t CO2e in May and the highest so far in 2025. By Juan Weik ACCU issuance by method type (mn) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Poland wraps up CBAM changes with European Parliament


18/06/25
18/06/25

Poland wraps up CBAM changes with European Parliament

Brussels, 18 June (Argus) — Poland has concluded negotiations on behalf of EU member states with the European Parliament for a revised carbon border adjustment mechanism (CBAM), ahead of handing over the bloc's six-month rotating presidency to Denmark at the end of June. But Warsaw will not lead discussions on the EU's emissions cut target for 2040 and the bloc's updated nationally determined contribution (NDC) to the Paris climate agreement. Leading negotiations for EU states with parliament, Poland's deputy climate minister Krzysztof Bolesta said the revised CBAM would exempt 90pc of originally covered EU companies from reporting obligations, while 99pc of emissions embedded in imported products would remain covered. The agreement on CBAM now has to be formally approved by parliament and EU ministers. Once published in the bloc's official journal, the revised CBAM text will exempt importers that do not exceed a new single mass-based threshold of 50 t/yr of imported goods. Bolesta admitted that progress has been held up on concluding the EU's NDC during Warsaw's presidency of EU ministerial meetings. CBAM was also listed by Bolesta as one of the points for flexibility in discussions on the 2040 climate target, alongside carbon credits under Article 6 of the Paris agreement, additional funding and flexibility between climate sub-targets. At a meeting of environment ministers yesterday, Bolesta indicated that most states still favour the European Commission linking its submission of an EU NDC to the UN — which includes a 2035 emissions cut target — with the bloc's planned 2 July proposal for a 2040 EU climate target. The CBAM yesterday contributed to delays in technical negotiations held in Bonn, Germany, for the UN Cop 30 climate conference in Brazil. The Like-Minded Group of Developing Countries, including countries such as Bolivia, China, Saudi Arabia, Cuba and Vietnam, had urged the need to address concerns "with climate change-related trade-restrictive unilateral measures". Despite "very, very divergent views", EU member states agree that it "is absolutely urgent to come up with an NDC before the end of September", Bolesta said. The Polish presidency of the EU, chairing climate ministers' meetings, has advanced NDC work as much as possible in the absence of the commission's proposal to revise the bloc's climate law. "We really have only a couple of months to come up with something. What lacks in the NDC draft is now the headline target," Bolesta said. Countries have not yet discussed the quality of Article 6 offsets, Bolesta added. "Everyone in the room realises that we need to be very stringent on what kind of offset will be let into the system," he said. EU climate commissioner Wopke Hoekstra is "cautiously optimistic" that a landing ground can be found on the 2040 climate target. He called for more assertive climate diplomacy, as a large part of the problem lies outside Europe. For China, Hoekstra noted unfair trade practices and "serious" concerns about plans to build additional coal-fired plants. "It's a mixed bag. And we invite them to step up their ambition," he said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Banks increased fossil fuel financing in 2024: Report


18/06/25
18/06/25

Banks increased fossil fuel financing in 2024: Report

London, 18 June (Argus) — Banks "significantly increased" their fossil fuel financing in 2024, reversing a trend of steadily declining fossil fuel financing since 2021, a report from a group of non-profit organisations found this week. The 65 biggest banks globally committed $869bn in 2024 to "companies conducting business in fossil fuels", the report — Banking on Climate Chaos — found. Those banks committed $429bn last year to companies expanding fossil fuel production and infrastructure. The report assesses lending and underwriting in 2024 from the world's top 65 banks to more than 2,700 fossil fuel companies. Figures are not directly comparable year-on-year, as the previous report, which assessed 2023, covered financing from 60 banks. The 60 biggest banks globally committed $705bn in 2023 to companies with fossil fuel business, last year's report found. Those banks committed $347bn in 2023 to companies with fossil fuel expansion plans. Of the five banks providing the most fossil fuel finance in 2024, four were US banks — JP Morgan Chase, Bank of America, Citigroup and Wells Fargo. The 65 banks assessed in this year's report have committed $7.9 trillion in fossil fuel financing since 2016, when the Paris climate agreement took effect, the report found. Finance is at the core of climate negotiations like UN Cop summits. Developed countries are typically called upon at such events to provide more public climate finance to developing nations, but the focus is also shifting to private finance, as overseas development finance looks set to drop . But fossil fuel financing banks are increasingly facing the risk of targeted and more complex climate-related litigation, according to a recent report by the London School of Economics' centre for economic transition expertise (Cetex). Climate litigation is not currently adequately accounted for in financial risk assessment, with case filing and decisions negatively impacting carbon financiers, it said. "While early climate cases primarily targeted governments and big-emitting ‘carbon majors', cases against other firms have proliferated quickly," Cetex said. The report also showed that, based on a review of disclosures from 20 banks supervised by the European Central Bank, many banks across Europe recognise litigation risks as material in the context of climate and environmental factors but tend to not be specific about the risks incurred. By Georgia Gratton and Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Adding credits, CO2 removals to EU ETS ‘fatal’: Study


18/06/25
18/06/25

Adding credits, CO2 removals to EU ETS ‘fatal’: Study

London, 18 June (Argus) — Allowing the use of international carbon credits or carbon removals for compliance under the EU emissions trading system (ETS) risks undermining the environmental integrity of the scheme and hindering the bloc's achievement of its climate targets, warned a study by research body the Oeko-Institut published today. Under the three scenarios examined in the study, which was commissioned by non-governmental organisation Carbon Market Watch, the EU ETS's supply-demand balance does not need to be artificially adjusted before 2035. But beyond this date the total number of allowances in circulation could fall below zero, meaning sectors under the scheme would either need to be fully decarbonised by this date or shut down unless flexibility is introduced to the system. Any reforms to increase ETS supply should focus on the system's market stability reserve, the study found, a mechanism which absorbs a percentage of excess supply from circulation each year but can also release permits if supply falls too low. Changes to the scheme's linear reduction factor — the amount by which its supply cap falls annually — would achieve the same thing but risk weakening the system's ambition, and is more likely to be politically challenging, the study said. Some EU member states have expressed interest in allowing the use of international carbon credits issued under Article 6 of the Paris climate agreement for ETS compliance for this purpose, and the European Commission said last week it is taking the option into consideration , although any such use would entail only "very high integrity" credits representing a "very small proportion" of the bloc's climate action. But introducing Article 6 credits to the ETS "poses significant risks to the functioning and environmental integrity of the system", the study found, pointing to the past use of Clean Development Mechanism credits to offset some ETS obligations to which it attributed the "collapse" of the carbon price. Including carbon removals in the scheme would pose a similar risk, the study found, concluding it is "crucial" they remain in a separate framework. The European Commission is expected to publish a report next year examining their potential inclusion. The commission will also assess in 2031 the feasibility of linking the existing ETS to the EU ETS 2 for road transport and buildings, scheduled for launch in 2027, which could increase the liquidity of the two schemes. But such a link "cannot ease tension in the [ETS] market with certainty, and administrative barriers to the merger are high", the study warned. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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